Aggregate Recruiting Intensity

2018 ◽  
Vol 108 (8) ◽  
pp. 2088-2127 ◽  
Author(s):  
Alessandro Gavazza ◽  
Simon Mongey ◽  
Giovanni L. Violante
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Equilibrium Model ◽  
Random Search ◽  
Firm Dynamics ◽  
Hiring Decisions ◽  
Aggregate Shocks ◽  
Fast Growing ◽  
The Great Recession ◽  
Matching Efficiency

We develop an equilibrium model of firm dynamics with random search in the labor market where hiring firms exert recruiting effort by spending resources to fill vacancies faster. Consistent with microevidence, fast-growing firms invest more in recruiting activities and achieve higher job-filling rates. These hiring decisions of firms aggregate into an index of economy-wide recruiting intensity. We study how aggregate shocks transmit to recruiting intensity, and whether this channel can account for the dynamics of aggregate matching efficiency during the Great Recession. Productivity and financial shocks lead to sizable procyclical fluctuations in matching efficiency through recruiting effort. Quantitatively, the main mechanism is that firms attain their employment targets by adjusting their recruiting effort in response to movements in labor market slackness. (JEL D22, E24, E32, J23, J41, J63, M51)

scholarly journals Rational Inattention in Hiring Decisions

2020 ◽  
Vol 12 (1) ◽  
pp. 1-40 ◽  
Author(s):  
Sushant Acharya ◽  
Shu Lin Wee
Keyword(s):  
Great Recession ◽  
Sufficient Information ◽  
Limited Capacity ◽  
Hiring Decisions ◽  
Rational Inattention ◽  
Unemployment Rates ◽  
The Great Recession ◽  
Matching Efficiency ◽  
Acceptance Rates ◽  
Joint Behavior

We provide an information-based theory of matching efficiency fluctuations. Rationally inattentive firms have limited capacity to process information and cannot perfectly identify suitable applicants. During recessions, higher losses from hiring unsuitable workers cause firms to be more selective in hiring. When firms cannot obtain sufficient information about applicants, they err on the side of caution and accept fewer applicants to minimize losses from hiring unsuitable workers. Pro-cyclical acceptance rates drive a wedge between meeting and hiring rates, explaining fluctuations in matching efficiency. Quantitatively, our model replicates the joint behavior of unemployment rates and matching efficiency observed since the Great Recession. (JEL D83, E24, E32, J23, J41, M51)

scholarly journals Labor Market Heterogeneity and the Aggregate Matching Function

2015 ◽  
Vol 7 (4) ◽  
pp. 222-249 ◽  
Author(s):  
Regis Barnichon ◽  
Andrew Figura
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Matching Function ◽  
The Great Recession ◽  
Worker Heterogeneity ◽  
Dramatic Decline ◽  
Matching Efficiency ◽  
Labor Market Matching ◽  
The Unemployed ◽  
Regression Residual

We estimate an aggregate matching function and find that the regression residual, which captures movements in matching efficiency, displays procyclical fluctuations and a dramatic decline after 2007. Using a matching function framework that explicitly takes into account worker heterogeneity as well as market segmentation, we show that matching efficiency movements can be the result of variations in the degree of heterogeneity in the labor market. Matching efficiency declines substantially when, as in the Great Recession, the average characteristics of the unemployed deteriorate substantially, or when dispersion in labor market conditions—the extent to which some labor markets fare worse than others—increases markedly. (JEL E24, E32, J41, J42)

scholarly journals Autonomes Fahren statt Stop and Go: Vorschläge zur effektiven Gestaltung der deutschen Kurzarbeit

2019 ◽  
Vol 68 (3) ◽  
pp. 252-260
Author(s):  
Almut Balleer ◽  
Britta Gehrke ◽  
Brigitte Hochmuth ◽  
Christian Merkl
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Great Recession ◽  
Timely Manner ◽  
Rule Based ◽  
The Great Recession ◽  
Stop And Go ◽  
Time Work ◽  
The Business Cycle ◽  
Short Time

Abstract This article argues that short-time work stabilized employment in Germany substantially during the Great Recession in 2008/09. The labor market instrument acted in timely manner, as it was used in a rule-based fashion. In addition, discretionary extensions were effective due to their interaction with the business cycle. To ensure that short-time work will be effective in the future, this article proposes an automatic facilitation of the access to short-time work in severe recessions. This reduces the likelihood of a too extensive use at the wrong point in time as well as structural instead of cyclical interventions.

scholarly journals Vulnerability of Latin American Migrant Families Headed by Women in Spain During the Great Recession: A Couple-Level Analysis

2018 ◽  
Vol 40 (1) ◽  
pp. 111-138
Author(s):  
Xiana Bueno ◽  
Elena Vidal-Coso
Keyword(s):  
Labor Market ◽  
Latin American ◽  
Great Recession ◽  
Family Characteristics ◽  
The Great Recession ◽  
Job Segregation ◽  
Dual Earner ◽  
Migrant Families ◽  
Level Analysis ◽  
Emerging Pattern

One of the outcomes of the Great Recession has been the emerging pattern of households maintained exclusively by women. The analysis of intracouple characteristics is crucial in the context of job segregation by gender and by immigrant origin, such as in Spain. Using the panel version of the Spanish Labor Force Survey from 2008 to 2015, we analyze the transition of dual-earner couples to female-earner couples among Latin American and Spanish-born households. Our results suggest that migrant vulnerability is not only a consequence of a segregated labor market by gender and origin but is also the result of the partners’ relative occupational and family characteristics. We show that, unlike Spanish-born couples, the risk of Latin American families becoming female-headed is higher for those couples in which the female partner has the weakest position in the occupational scale and for those with children in the household.

scholarly journals Three essays on labor economics

2021 ◽  
Author(s):  
◽  
Tapas Paul
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Labor Market Participation ◽  
Program Participation ◽  
Journal Entry ◽  
Journal Publication ◽  
The Great Recession ◽  
Added Worker Effect ◽  
Nationally Representative ◽  
The Impact

This dissertation addresses labor market issues. The first two chapters deal with employment issues during the great recession using nationally representative data from the Survey of Income and Program Participation. The first chapter looks at the added worker effect in the great recession, the wife's labor market response to a husband loss of job. The second chapter investigates the impact of a wife's labor market participation on family poverty. The third chapter examines employment opportunities in the economics discipline using journal publication records from IDEAS/RePEc. It looks at the effect of new journal entry on the distribution of publicati

scholarly journals What Employers Want from Interns: Demand-Side Trends in the Internship Market

2020 ◽  
Author(s):  
Carrie Shandra
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Career Transition ◽  
The United States ◽  
Demand Side ◽  
Entry Level ◽  
The Great Recession ◽  
Education Experience ◽  
College Career ◽  
Skill Requirements

Internships have become a ubiquitous component of the college-career transition, yet empirical evidence of the internship market is limited. This study uses data from 1.3 million internship postings collected between 2007-2016 in the United States to (1) identify trends in internship education, experience, and skill requirements over the Great Recession and recovery periods; (2) evaluate how these trends correspond to those observed in the traditional labor market; and (3) assess robustness across labor market sectors. Results indicate that internship education and skill requirements increased substantially throughout the recession and recovery periods, indicative of a longer-term structural shift in employer expectations about internship hiring. Additionally, growth in internship education and skill requirements largely outpaced growth in non-internship education and skill requirements over the same period, suggesting potential substitution of non-interns with interns. Post-recession employers still consider internships to be entry-level positions—yet now expect interns to have skills in hand.

scholarly journals Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19

SERIEs ◽  
2021 ◽  
Author(s):  
Cristina Lafuente ◽  
Raül Santaeulàlia-Llopis ◽  
Ludo Visschers
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Dual Labor Market ◽  
Total Employment ◽  
Temporary Contracts ◽  
The Great Recession ◽  
Time Work ◽  
Short Time ◽  
Permanent Workers ◽  
The Impact

AbstractWe investigate the behavior of aggregate hours supplied by workers in permanent (open-ended) contracts and temporary contracts, distinguishing changes in employment (extensive margin) and hours per worker (intensive margin). We focus on the differences between the Great Recession and the start of the COVID-19 Recession. In the Great Recession, the loss in aggregate hours is largely accounted for by employment losses (hours per worker did not adjust) and initially mainly by workers in temporary contracts. In contrast, in the early stages of the COVID-19 Recession, approximately sixty percent of the drop in aggregate hours is accounted for by permanent workers that do not only adjust hours per worker (beyond average) but also face employment losses—accounting for one-third of the total employment losses in the economy. We argue that our comparison across recessions allows for a more general discussion on the impact of adjustment frictions in the dual labor market and the effects policy, in particular the short-time work policy (ERTE) in Spain.

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